The segmented markets theory can explain
A) why yield curves usually tend to slope upward.
B) why interest rates on bonds of different maturities tend to move together.
C) why yield curves tend to slope upward when short-term interest rates are low and to be inverted when short-term interest rates are high.
D) why yield curves have been used to forecast business cycles.
A
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The equilibrium price under an import quota is below the price that occurs with free trade
Indicate whether the statement is true or false
If the saving rate decreases, break-even investment will be ________ than investment, and the capital-labor ratio will ________
A) greater; increases B) greater; decreases C) less; increases D) less; decreases
Which of the following will not cause the aggregate supply curve to shift?
a. an increase in capital stock b. a decrease in the number of workers c. a decrease in the amount of natural resource base d. a change in the price level e. an increase in the number of entrepreneurs
Unemployment insurance
a. reduces the hardship of unemployment, but it also increases the amount of unemployment. b. reduces the incentive for the unemployed to find and take new jobs. c. causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. d. All of the above are correct.